In today’s briefing:
- Ad Hoc S&P500 Change on Twitter Deletion
- SPX 3,500 Transitioning Higher
- Nitro Software Rejects Potentia, Again, And Engages With KKR
- Chipotle Mexican Grill: Major Drivers
- Moody’s Corporation: ESG Insurance Underwriting Solutions & Other Drivers
- ServiceNow Inc: Acquisition of Era Software
- Texas Instruments: Production At New Facility & Other Drivers
- Ford Motors: Major Drivers
- Valero Energy: Major Drivers
- Biogen Inc: Push For Byooviz & Other Drivers
Ad Hoc S&P500 Change on Twitter Deletion
- S&P DJI announced late 27 October 2022 that Twitter Inc (TWTR US) would be deleted from the S&P500, replaced by Arch Capital (ACGL US).
- RXO would be added to the MidCap400 while Bread Financial Holdings (BFH) would move from MidCap400 to SmallCap600 and Unifi Inc (UFI US) would get deleted from the 600.
- This insight presents the issues and the flows, which are not to be separated.
SPX 3,500 Transitioning Higher
- Our bullish risk call at SPX 3,500 has panned out nicely while using our short group to sell squeeze rallies. Increasing evidence sides with a more bullish November for risk.
- USD and the US 10yr yield face pivot support with a tactical bounce bias. Conviction is to sell the USD and Yield into strength.
- RTY long from 1,650 has been the star performer while shorting the NDX on squeeze spiked has worked fairly well. Update SPX, RTY and NDX buy and sell level outlined.
Nitro Software Rejects Potentia, Again, And Engages With KKR
- On the 28 October, Potentia announced an improved (and final) off-market Offer of A$1.80/share for Nitro (NTO AU), a 13.9% improvement over its initial proposal on the 30 August.
- Nitro has now concluded the Potentia Takeover Bid undervalues Nitro. The Offer, however, is still proceeding, and will open in two weeks.
- Separately, KKR’s Alludo has pitched a non-binding – subject to due diligence – Offer by way of a Scheme (or off-market takeover) at A$2.00/share. Nitro is supportive of this Offer.
Chipotle Mexican Grill: Major Drivers
- Chipotle Mexican Grill delivered a mixed set of results.
- In the quarter, Chipotle continues to view broadening trends by the income levels with the consumers with lower income reducing frequency.
- We provide the stock of Chipotle Mexican Grill with a ‘Hold’ rating and a revision in the target price.
Moody’s Corporation: ESG Insurance Underwriting Solutions & Other Drivers
- Moody’s Corporation delivered a disappointing result, failing to meet Wall Street expectations with respect to both, revenues as well as earnings.
- The Moody’s Analytics business continued to perform quite well with strong revenue growth and an increase in the annualized recurring revenue.
- We provide the stock of Moody’s with a ‘Hold’ rating with a revision in the target price.
ServiceNow Inc: Acquisition of Era Software
- Service Now had a solid third quarter and the company delivered another all-around beat.
- Considering the solid organic growth and market demand of the company, it is expected that there will be 750 million new applications built by 2025.
- The company focused on improving customer service experience and expanding its market by acquiring other software companies which is why it closed the acquisition of Era Software.
Texas Instruments: Production At New Facility & Other Drivers
- Texas Instruments had a good third quarter, with revenue increasing by 13% year over year to $5.2 billion, surpassing Wall Street expectations.
- After two years of construction, the company’s new semiconductor chip facility has begun producing chips.
- The management anticipates Texas Instruments’ fourth-quarter revenue to be in the $4.4 billion to $4.8 billion range.
Ford Motors: Major Drivers
- Ford’s stock has seen some recovery off-late despite a mixed result for the third quarter.
- The company surpassed the revenue expectations of Wall Street but missed out on earnings and ended up with nearly $50 billion in liquidity.
- The only silver lining in the quarter was Ford Credit which delivered another healthy quarter with an EBT of $600 million.
Valero Energy: Major Drivers
- Valero Energy had a mixed performance in its recent financial results for the quarter as its revenues were significantly above Wall Street expectations.
- The company has a good refining margin supported by continued energy cost advantages, low product inventories, and strong product demand for the U.S. refineries in comparison to the global competitors.
- The refining fundamentals stay strong, with global product supply staying constrained because of the high natural gas prices and capital reductions.
Biogen Inc: Push For Byooviz & Other Drivers
- Biogen’s stock has been on a roll as the company delivered another solid set of results, surpassing Wall Street expectations on all counts.
- Along with Eisai, there have been positive results from Clarity AD, a Phase 3 study of the lecanemab.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
